Volvo is gearing up to launch its small electric crossover, which is expected to be called the EX30. The vehicle is being designed around a subscription model, according to Autocar, with the aim of appealing to younger demographics.
Volvo CEO Jim Rowan has said that the subscription model will help the company “talk to new customers” and that the crossover will be targeted at first-time buyers in cities.
“We can talk to completely different demographics, for the first time probably, and that younger demographic will probably be the ones who shop more online,” Rowan said earlier this year about the forthcoming crossover.
See also: Volvo EX30 Electric SUV Spotted Testing In China, To Launch This Year
The EX30 is set to launch at the end of 2023 and will be positioned below Volvo’s XC40 Recharge and C40 Recharge models.
However, questions have been raised about the feasibility of the subscription model for younger customers who are already struggling with multiple subscriptions. Additionally, the EX30 may not have as much range as Volvo’s existing electric vehicles, which could limit its appeal to urban consumers who lack access to home charging facilities.
See also: Volvo targets price parity between electric vehicles and ICE cars in 2025
While targeting younger demographics can be risky, Volvo may find success with older customers who are also attracted to the vehicle’s features and subscription model. Regardless of the demographic, the subscription model could help address the issue of rapid vehicle depreciation.
